Chainlink’s Proof of Reserve feature is now available on Aave lending platform on the Avalanche blockchain for on-chain verification and transparency of lending markets.

BGD Labs, a development firm focusing on the Aave ecosystem, led the integration that will enable transparency for monitoring the financial state of liquidity pools on Avalanche-based Aave platform that contain wrapped tokens like AAVE.e, DAI.e, LINK.e, WBTC.e, and WETH.e.

Avalanche relies on bridging for many Ethereum-based tokens which can then be used on Aave. The bridging process works by locking up an amount of tokens and issuing an equivalent number of tokens on Avalanche, a process called wrapping.